in Re State Farm Lloyds

Court of Appeals of Texas·Decided July 28, 2015·No. 04-15-00474-CV·Published

Opinion

ACCEPTED 04-15-00474-CV FOURTH COURT OF APPEALS SAN ANTONIO, TEXAS 7/28/2015 4:51:49 PM KEITH HOTTLE CLERK

04-15-00474-CV No. ____________

Court of Appeals, Fourth District FILED IN 4th COURT OF APPEALS San Antonio, Texas SAN ANTONIO, TEXAS 07/28/2015 4:51:49 PM KEITH E. HOTTLE Clerk In re State Farm Lloyds

Relating to Cause Nos. 2014-CVF-001162-D1, 2014-CVF-001048-D1 in the 49th Judicial District Court Webb County, Texas

OPPOSED MOTION FOR TEMPORARY RELIEF STAYING THE SHARING OF DISCOVERY PENDING MANDAMUS

J. Joseph Vale jvale@atlashall.com State Bar No. 24084003 Sofia A. Ramon sramon@atlashall.com State Bar No. 00784811 Dan K. Worthington dkw@atlashall.com State Bar No. 00785282 ATLAS, HALL & RODRIGUEZ, LLP 818 Pecan/P.O. Box 3725 McAllen, Texas 78501 (956) 682-5501 (phone) (956) 686-6109 (facsimile)

Attorneys for Relator State Farm Lloyds

July 28, 2015 TO THE HONORABLE JUSTICES OF THE COURT OF APPEALS:

Relator State Farm Lloyds (“State Farm”) files this motion for temporary

relief requesting a stay of identical sharing provisions in protective orders entered

in two cases, permitting State Farm’s confidential information to be shared with

other litigants in “Related Litigation.” (Rec. Tab 18, Rec Tab. 19.) 1 State Farm

respectfully submits that the sharing provision in each of these orders fails to

adequately protect State Farm’s proprietary materials from unnecessary and

unreasonable dissemination. If Plaintiffs’ counsel is permitted to share discovery

with litigants whose cases bear only a tenuous relationship to these cases, it will

cause irreparable harm and undermine this mandamus proceeding. Moreover,

because the discovery Plaintiffs will receive is unaffected by whether their counsel

can share that discovery with other litigants, Plaintiffs will not be prejudiced by a

temporary stay of the provision providing for sharing. Accordingly, State Farm

requests temporary relief pursuant to Tex. R. App. P. 52.10, briefly staying the

sharing provision in each of Respondent’s orders during the pendency of this

proceeding.

1 The protective orders entered in each of the two cases at issue here, Pena v. State Farm Lloyds et al., Cause No. 2014-CVF-001048-D1, and Rodriguez v. State Farm Lloyds et al., Cause No. 2014-CVF-001162-D1, contain identical sharing provisions. State Farm seeks a stay of the operation of this provision in each case.

2 ARGUMENT

A stay pending mandamus is warranted because (1) the merits strongly favor

mandamus relief; (2) in the absence of a stay, State Farm will face considerable

prejudice because its confidential information will have been disseminated

unnecessarily; (3) discovery sharing will have wide-ranging effects; and

(4) Plaintiffs will suffer no prejudice from the short delay pending mandamus.

First, the merits of State Farm’s petition strongly favor mandamus relief.

As set forth more fully in State Farm’s petition, Respondent’s protective orders

contain an overly broad sharing provision which allows Plaintiffs’ counsel to share

State Farm’s confidential information with litigants who would not otherwise have

access to it. Respondent’s orders permit Plaintiffs’ counsel to share certain

confidential information in other “Related Litigation” against State Farm which

lacks reasonable temporal, geographic, or scope limitations. Because the sharing

provision is not narrowly tailored, it does not adequately protect State Farm’s

confidential information.

Second, in the absence of a stay pending mandamus, State Farm would be

faced with the irreparable harm it is seeking to prevent: the unnecessary and

unwarranted dissemination of its confidential information. Thus, without a stay,

even if this Court decides the petition is meritorious, State Farm would be unable

to remedy the harm of over-dissemination. This is the very reason that State Farm

3 has no adequate remedy on appeal and has sought review by mandamus. See In re

Ford Motor Co., 211 S.W.3d 295, 302 (Tex. 2006) (orig. proceeding) (per curiam)

(no adequate remedy by appeal when trial court declared documents fell outside of

protective order). Further, Texas courts have stayed trial court orders pending

mandamus where the protection of confidential information is at stake. See, e.g.,

In re Guidant Corp., No. 13-06-00036-CV, 2008 WL 4257243, at *1, 2008 Tex.

App. LEXIS 6923 (Tex. App.—Corpus Christi Sept. 15, 2008, orig. proceeding)

(mem. op.) (per curiam) (describing prior stay of trial court’s order striking a

stipulated protective order). Notably, this Court recently granted a stay of another

of Respondent’s discovery orders in these cases from which State Farm has also

sought mandamus relief. See In re State Farm Lloyds, No. 04-15-00451-CV,

Order (Tex. App.—San Antonio July 22, 2015) (per curiam) (Ex. A). 2

Third, the effects of the sharing provision in each of Respondent’s orders are

not limited to the two underlying cases. In fact, they primarily relate to other

cases. The provision permits Plaintiffs’ counsel to share confidential information

produced in these cases in “Related Litigation” brought against State Farm, defined

broadly as any “first-party lawsuit filed in Texas by The Mostyn Law Firm arising

out of a claim for damages to residential, commercial, or personal property as a 2 Available at: http://www.search.txcourts.gov/SearchMedia.aspx?MediaVersionID=2ce01f46-08f1- 48a0-a1b3-aa22addb3082&coa=coa04&DT=Order&MediaID=cc0026a5-f5d8-47a2-b9b0- 2e994f207c0c.

4 result of a hailstorm that occurred in Texas.” (Rec. Tab 18 ¶ 1, Rec. Tab 19 ¶ 1).

Respondent’s orders will thus necessarily have an impact on the conduct of

discovery in any case which qualifies as “related” under this overly broad

definition.

Fourth, Plaintiffs will suffer no prejudice from the short delay pending

resolution of State Farm’s petition. Discovery in this case will proceed regardless

of whether Plaintiffs’ counsel is permitted to share that discovery with other

litigants. Plaintiffs will thus suffer no prejudice from the minor delay pending

resolution of State Farm’s petition.

5 PRAYER

For the foregoing reasons, State Farm’s motion for temporary relief should

be granted and the sharing provision in Respondent’s July 13, 2015 protective

orders should be stayed during the pendency of this proceeding.

Respectfully submitted,

/s/ J. Joseph Vale J. Joseph Vale jvale@atlashall.com State Bar No. 24084003 Sofia A. Ramon sramon@atlashall.com State Bar No. 00784811 Dan K. Worthington dkw@atlashall.com State Bar No. 00785282 Atlas, Hall & Rodriguez, LLP 818 Pecan/P.O. Box 3725 McAllen, Texas 78501 (956) 682-5501 (phone) (956) 686-6109 (facsimile)

Attorneys for State Farm Lloyds

6 CERTIFICATE OF COMPLIANCE

Pursuant to Texas Rules of Appellate Procedure 10.1(a)(5) and 52.10(a),

Dan K. Worthington, counsel for State Farm, notified counsel for plaintiffs by

expedited means, specifically via telephone, that this motion is being filed. The

plaintiffs are opposed to said motion.

/s/ J. Joseph Vale J. Joseph Vale

7 CERTIFICATE OF SERVICE

I certify that the foregoing document (and any attachments) was

electronically filed with the Clerk of the Court using the electronic case filing

system of the Court. I also certify that a true and correct copy of the foregoing was

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Related

In Re Ford Motor Co.
211 S.W.3d 295 (Texas Supreme Court, 2006)